Executive Summary for BeerMeUp, a subsidiary of “Sadler, Bourzikas and Beer”

Developing a understanding of the Beer landscape is a critical step as BeerMeUp grows into an organization that has the national attention of beer Connoisseurs across the World. This report outlines the strategic approach to the market that will support the execution of future Beer Products across the Beer Portfolio. Additionally, the sustainment of existing operations is substantial to the ongoing success that has made BeerMeUp successful for the last 14 years. This report is to provide a solid under of the US Beer market so BeerMeUp can gain a competitive advantage over the vast number of Beer Producers.

Collecting BeerScape Information

As we discussed in the executive summary, it is vitally important to understand the beer landscape. Reviewing the Map below, the opportunity is tremendous in many large states to open a Brewery, such as California and Texas due to the population size; however, Florida might be a state with not as many breweries with a dense population. As we explore the data in this report, we will identify other areas of interest.

Map A - Breweries by State

In contrast to the breweries per state in the map above, the Beers by State is another good way to review the data. While Florida doesn’t have many local breweries as mentioned above, it has a lot of beers in the state and it might be a good location for the next brewery because Florida is a state that does drink a lot of different types of beer. However, additional testing will be needed, but a good target for a location.

Map B - Beers by State

As you continue to do the exploratory research, we implemented an interactive matrix will outline the number of Beers produced by each state. There are very good targets to do further investigation for your next location. This matrix will help guide you to next hot market as you begin to understand what beers and breweries work in which geography across the US.

Table A
x
CO 47
CA 39
MI 32
OR 29
TX 28
PA 25
MA 23
WA 23
IN 22
WI 20
NC 19
IL 18
NY 16
VA 16
FL 15
OH 15
MN 12
AZ 11
VT 10
ME 9
MO 9
MT 9
CT 8
AK 7
GA 7
MD 7
OK 6
IA 5
ID 5
LA 5
NE 5
RI 5
HI 4
KY 4
NM 4
SC 4
UT 4
WY 4
AL 3
KS 3
NH 3
NJ 3
TN 3
AR 2
DE 2
MS 2
NV 2
DC 1
ND 1
SD 1
WV 1


Deeper Review of the BeerScape

As we continue down understand the market in totality, our research drove us to understand the next variety of Beers. While we are only showing the Top and Bottom 6 beers based on the Beer Identification in order, the rest of the data is summarized in the report. This list is not meant to be exhaustive, it is meant to show you the magnitude of beers that are being sold and distributed across the US.

Table B
Brew_ID BreweryName Beer_ID ABV IBU Beer_Style Beer_Ounces Brewery_Name City State
1 Get Together 2692 0.045 50 American IPA 16 NorthGate Brewing Minneapolis MN
1 Maggie’s Leap 2691 0.049 26 Milk / Sweet Stout 16 NorthGate Brewing Minneapolis MN
1 Wall’s End 2690 0.048 19 English Brown Ale 16 NorthGate Brewing Minneapolis MN
1 Pumpion 2689 0.060 38 Pumpkin Ale 16 NorthGate Brewing Minneapolis MN
1 Stronghold 2688 0.060 25 American Porter 16 NorthGate Brewing Minneapolis MN
1 Parapet ESB 2687 0.056 47 Extra Special / Strong Bitter (ESB) 16 NorthGate Brewing Minneapolis MN
Brew_ID BreweryName Beer_ID ABV IBU Beer_Style Beer_Ounces Brewery_Name City State
2405 556 Pilsner Ukiah 98 0.055 NA German Pilsener 12 Ukiah Brewing Company Ukiah CA
2406 557 Heinnieweisse Weissebier 52 0.049 NA Hefeweizen 12 Butternuts Beer and Ale Garrattsville NY
2407 557 Snapperhead IPA 51 0.068 NA American IPA 12 Butternuts Beer and Ale Garrattsville NY
2408 557 Moo Thunder Stout 50 0.049 NA Milk / Sweet Stout 12 Butternuts Beer and Ale Garrattsville NY
2409 557 Porkslap Pale Ale 49 0.043 NA American Pale Ale (APA) 12 Butternuts Beer and Ale Garrattsville NY
2410 558 Urban Wilderness Pale Ale 30 0.049 NA English Pale Ale 12 Sleeping Lady Brewing Company Anchorage AK



As a item to pay attention as you begin to look through the analysis, it is essential to not just look at the raw numbers, but rather understand and realize that there are fields in the data set that have invalid or N/A columns. As you work with your data science teams, they will be critical as you being the basic regression testing because these type of data irregularities can cause data integrity issues within results. The table below is meant to be a quick summary of the columns that have invalid or N/A Columns

Table C
x
Brew_ID 0
BreweryName 0
Beer_ID 0
ABV 62
IBU 1005
Beer_Style 0
Beer_Ounces 0
Brewery_Name 0
City 0
State 0



As we begin analyzing the data in the brewery’s and types of beer, two important factors need to be understood and analyzed. Median Alcohol by Volume (ABV) and International Bitterness Units (IBU) are essential in understanding what factors are important in each states. For example, the beer drinkers in Alaska like bitter beer (IBU = 46) as compared to Arizona (IBU = 20.5). While reviewing this is a matrix is difficult, the data science team can use this data and decorate with other variables are you begin developing and marketing your new beer and or brewery.

Table D
State ABV IBU
AK 0.0560 46.0
AL 0.0600 43.0
AR 0.0520 39.0
AZ 0.0550 20.5
CA 0.0580 42.0
CO 0.0605 40.0
CT 0.0600 29.0
DC 0.0625 47.5
DE 0.0550 52.0
FL 0.0570 55.0
GA 0.0550 55.0
HI 0.0540 22.5
IA 0.0555 26.0
ID 0.0565 39.0
IL 0.0580 30.0
IN 0.0580 33.0
KS 0.0500 20.0
KY 0.0625 31.5
LA 0.0520 31.5
MA 0.0540 35.0
MD 0.0580 29.0
ME 0.0510 61.0
MI 0.0620 35.0
MN 0.0560 44.5
MO 0.0520 24.0
MS 0.0580 45.0
MT 0.0550 40.0
NC 0.0570 33.5
ND 0.0500 32.0
NE 0.0560 35.0
NH 0.0550 48.5
NJ 0.0460 34.5
NM 0.0620 51.0
NV 0.0600 41.0
NY 0.0550 47.0
OH 0.0580 40.0
OK 0.0600 35.0
OR 0.0560 40.0
PA 0.0570 30.0
RI 0.0550 24.0
SC 0.0550 30.0
SD 0.0600 NA
TN 0.0570 37.0
TX 0.0550 33.0
UT 0.0400 34.0
VA 0.0565 42.0
VT 0.0550 30.0
WA 0.0555 38.0
WI 0.0520 19.0
WV 0.0620 57.5
WY 0.0500 21.0



While it is important to understand the raw data, this bar chart will allow you to quickly decipher which states prefer which Beer IBU.

Table E


Just as important as the IBU scale, the following ABV bar chart will allow you to quickly decipher which states prefer which Beer ABV

Table F
Alcohol by Volume Chart

Alcohol by Volume Chart


Another good example of how you can utilize the data set to your competitive advantage is understanding which State has the Maximum ABV and which states has the most bitter Beer. The following table outlines the top state that has the IBU and ABV.

Table G
Brew_ID BreweryName Beer_ID ABV IBU Beer_Style Beer_Ounces Brewery_Name City State
375 52 Lee Hill Series Vol. 5 - Belgian Style Quadrupel Ale 2565 0.128 NA Quadrupel (Quad) 19.2 Upslope Brewing Company Boulder CO
Brew_ID BreweryName Beer_ID ABV IBU Beer_Style Beer_Ounces Brewery_Name City State
1857 375 Bitter Bitch Imperial IPA 980 0.082 138 American Double / Imperial IPA 12 Astoria Brewing Company Astoria OR


As we look into the statistics of the Alcohol by Volume in Table H, the data shows that the Mean ABV is almost 6% but is as high as 10% and as low at 0.1%.

Table H
vars n mean sd median trimmed mad min max range skew kurtosis se
X1 1 2348 0.0597734 0.0135417 0.056 0.0583888 0.0118608 0.001 0.128 0.127 0.9572529 1.13642 0.0002795


Based on the data set, there is a positive correlation and a linear relationship between IBU and ABV, as seen in Table I. As the ABV increases, so does the IBU. This is essential in your creation of a brewery and new beers to understand that this is a standard relationship in these two variables.

Table I


In our box and whisker plot in Table K, this is another way to analyze the beers per state. The competitive intelligence that can be gained is the typical sweet spot, median and mean, for where the majority of the beers are being produced by that state based on IBU and ABV. Depending on the appetite, staying in this range is a strategic decision in how your build breweries or formulate the beer.

Table K

Conclusion

In conclusion, it is essential to understand the market as the company grows. While there are many breweries and beers across the United States, it is essential in understanding the beerscape of which market you enter. As discussed in many of the charts and graphs above, different areas of the country are accustomed to higher and lower alcohol content and more or less bitter brews. This could be attributed to ingredient availability, but it something that will help the company understand the market because it is the local rules that will prevail.

As the company begins to sift through all the data, there are multiple approaches to take. For example, the Colorado region since has the largest amount of breweries and most diverse brewing styles across the nation. However, that maker may be saturated and the barriers of entry may be difficult. Another strategy would be to utilize the BeerMeUp’s already strong product line, utilize the knowledge and strength of the organization, and target States that have only a few breweries and local beers to establish the market. States like Florida, Alabama, and Kansas could be prime targets as both states have large university settings.

Overall, with all the of the information contained in the report, we believe that BeerMeUp is in a good competitive situation because of the forward thinking approach using data science techniques to gain even more market share.

Appendix - Reference Materal

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